This watchdog blog, by journalist Norman Oder, offers analysis, commentary, and reportage about the $4.9 billion project to build the Barclays Center arena and 16 high-rise buildings at a crucial site in Brooklyn. Dubbed Atlantic Yards by developer Forest City Ratner in 2003, it was rebranded Pacific Park in 2014 after the Chinese government-owned Greenland Group bought a 70% stake in 15 towers. New York State still calls it Atlantic Yards. Contact: AtlanticYardsReport[at]hotmail.com

Friday, September 04, 2015

Following up the New York Post rumbles that Brooklyn Nets majority owner Mikhail Prokhorov is ready to buy Forest City Enterprises' 20% share of the team and 55% share of the arena (holding company), the New York Daily News reports that it won't get done by a Sept. 8 deadline for Forest City to pay Prokhorov a fee:

But, according to three high-ranking officials with both the Nets, Prokhorov and Forest City, the deal with Forest City Enterprise isn’t close to completion and won’t be done for perhaps another month.

Note that the deadline has been extended multiple times, and likely will be again.

Team value?

From the Daily News:

A published report on Thursday valued the Nets at around $700 million and Forest City’s 20% at around $100 million.However, a source disputed the valuation of the team and the arena in the report as it relates to a minority stake, saying they were “very low.”

The numbers are indeed low, so we'll see. Note how the Daily News can't even mention the name of its tabloid rival.

The big picture

NetsDaily's "Net Income" (aka Bob Windrem) looks at the larger implications, writing that, thanks to the loss of the expensive point guard Deron Williams, and other cost-cutting, the Nets could make money this year, and surely will "season, with the national TV rights money flooding in."

And when they become profitable, the Nets become more attractive to sell, in part or in full, or to partner with another sports venture, and financing costs go down.

He does note some ominous news:

Reportedly, their renegotiation of local TV rights with YES did not go well and they're in arbitration. Problem is their ratings are the lowest in the NBA.And of course, there's the issue of basketball operations, that is, the team on the court. Can the Nets break out of their mediocrity of the past two years? A lot of pundits say the worst is yet to come. Profit or not, that will not sit well with fans, who after all only care about wins and losses, not profits and and losses.